Are there any clauses in a insurance contract that allows an insurer to not pay claims if too many people die from Covid virus?

Is there a risk that insurance customers will be left out to dry?


The insurance company could go bankrupt.

But a reputable insurance company will have their own insurance, called reinsurance, to protect their policy-holders and their investors from this possibility.

  • And if the re-insurer goes bankrupt? – Hart CO Apr 1 '20 at 0:18
  • 5
    @HartCO, you can't extract blood from a stone. But if reinsurers are going bankrupt, then very likely the loss is on a scale where the government is likely to step in. – The Photon Apr 1 '20 at 0:21
  • And if the government goes bankrupt? – glglgl Apr 2 '20 at 7:55
  • @glglgl, the government doesn't go bankrupt, it just prints more money, causing inflation, and reducing the real value of its debts. – The Photon Apr 2 '20 at 10:04
  • @glglgl, at least if it's a government that controls its own currency and has debts denominated in that currency. – The Photon Apr 2 '20 at 10:06

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